HUMAN RESOURCES MANAGEMENT

ASSIGNMENT
ON

HUMAN RESOURCES MANAGEMENT

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Submitted to:

(................................)

Submitted By:

(...................................)

Contents
ARTICLE I. 1. ABSTRACT.......................................................................................................................... 3
A DEMONSTRATION OF HOW

THE WORLDS LOCAL BANK

HSBSS GROUP VALUES AND BUSINESS PRINCIPLES

REFLECTED BY THE EMPLOYEES IN DIFFERENT IDEAS AND CULTURE.

BESIDES THAT HOW THE RECRUITMENT,

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SELECTION, MOTIVATION AND RETENTION OF EMPLOYEES EFFECTIVE TO MAINTAIN TEAM INTEREST OTHER
THAN INDIVIDUAL INTERESTS TO SUSTAIN AS A FAIR AND OBJECTIVE EMPLOYER.

MOREOVER HOW IT HELPS TO

MAINTAIN THE SIGNATURE STRENGTHS AND SUCCESS OF PAST AND ONGOING BASED ON THE CORPORATE
STRATEGY OF

HSBC................................................................................................................................. 3

ARTICLE II. 2. PURPOSE OF THE ASSIGNMENT....................................................................................4

ARTICLE III. 3. BACKGROUND................................................................................................................. 4
ARTICLE IV. 4. INTRODUCTION............................................................................................................... 4
ARTICLE V. (TASK1.1) DISTINGUISH BETWEEN PERSONNEL MANAGEMENT AND HRM................5
ARTICLE VI. (TASK 1.2) FUNCTIONS OF HRM........................................................................................ 6
ARTICLE VII. (TASK 1.3)ROLE AND RESPONSIBILITIES OF LINE MANAGERS IN HRM....................6
(TASK 1.4)IMPACT OF LEGAL AND REGULATORY FRAME WORK OF HRM.....................................7
ARTICLE VIII. L03 REWARD EMPLOYEES TO MOTIVATE AND RETAIN..............................................8
ARTICLE IX. (TASK 3.1) THE LINK BETWEEN MOTIVATIONAL THEORY AND REWARD...................8
ARTICLE X. (TASK 3.2) PROCESS OF JOB EVALUATION AND OTHER FACTORS DETERMINING
PAY............................................................................................................................................................. 9
ARTICLE XI. (TASK 3.3)EFFECTIVENESS OF REWARD SYSTEM........................................................9
ARTICLE XII. (TASK 3.4) METHODS OF MONITORING EMPLOYEE PERFORMANCE.........................9
ARTICLE XIII. CONCLUSION................................................................................................................... 10
ARTICLE XIV. BIBLIOGRAPHY............................................................................................................... 11

Article I. 1. ABSTRACT
A demonstration of how the worlds local bank HSBSS group values and
business principles reflected by the employees in different ideas and culture.

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Besides that how the recruitment, selection, motivation and retention of

employees effective to maintain team interest other than individual interests to
sustain as a fair and objective employer. Moreover how it helps to maintain the
signature strengths and success of past and ongoing based on the corporate
strategy of HSBC.

Article II. 2. PURPOSE OF THE ASSIGNMENT

To signify the role of employees with customers, community and their
positive approach to levels of management, besides evaluate their role and
performance and examine the delegation of authority and accountability,
ethical and sustainable business practices. It consists of social and
environmental impacts of decision in lending and investment, commitment in
the welfare of communities and the environment. Besides that commitment to
quality, competence, truth and fair dealings and commitment in laws and
regulations of the group conducting its business region. Moreover personal
standards of integrity on all levels of business principles and implementation
of business strategy and business conduct of employees also group values
and reputation. Furthermore to evaluate components of business principles
such as outstanding customer service, effective and efficient operations,
strong capital and liquidity, product lending policy and strict expense
discipline.

Article III.

3. BACKGROUND

The Hongkong and Shanghai Banking Corporation (HSBC) was founded in 1865
to financing the International trade between Europe and China. Later the Midland
Bank in UK founded in 1836 in Birmingham merged with HSBC in 1992. HSBC is
one of the biggest future looking bank in the world as worlds local bank, with
head quarters at London with International network offices about 7500 offices in
87 countries and covering the territories across Europe, Asia, U.S.A, Middle East
and Africa. The HSBC has 100 million customers around the globe and listed the
stock exchanges of London, Hongkong, New York, Paris and Bermuda. Besides
that shares held by 221,000 shareholders in 127 countries at the end of 2012.

Article IV. 4. INTRODUCTION

To sustain worlds one of the largest bank and maintain the past and continuing
business success and reflect the statement of values as well as corporate
strategic principles, the HRM and HR have an important role to in Global HSBC as
worlds local bank. As a global bank HR responsibility to be open to different
ideas and culture. The HRM department highly responsible to recruitment,
selection, motivation and retention of HR by diverse and inclusive meritocratic
approach to the recruitment process due to the multicultural operations in
different geographical regions to reflect the core corporate strategically signature
strengths of the organization.
L01 PERSONNEL MANAGEMENT AND HRM

The world is changing and there is no change to change. The HRM concept
gone ahead the administrative tasks of personnel management and brought a

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wide vision to resources that contributes to the obtainment of organizational

goals.

Article V. (Task1.1) Distinguish between Personnel Management and HRM

The both term personnel management and human resource management are
deals the term managing people, but the approach is different. For example, in
traditional manufacturing units there personnel managers are controlling the
people and in service sector HR manager manage people. So the first is archaic
and the second is modern. So the personnel management is from smoke era and
HRM effective in the 21st century and it shows a paradigm move to the practice of
managing the personnel resources. So it is revealed that, the HRM has a focus
and strategy and it suits to the needs of new generation organizations. HRM
concept focused to the planning, monitoring as well as control phases of
resources. But in personnel management was in a great extent mediating
between employees and employers and workforce focused, similarly the HRM
focused on resources.
PERSONNEL MANAGEMENT
Administrative in Nature
Deals with employees payroll and employment laws
Narrow sense
Can be considered as reactive
Independent from an organization
Motivate employees with compensations, rewards and bonuses
Focus on administering people
HUMAN RESOURCES MANAGEMENT
Management of work force
Contribution to Organizations success
Broader sense
Can be considered as proactive
HRM incorporates and develop personal management skills
Develop a team of employees in the organization
Continuous development of policies and functions for improving a companys work force
HRM is an integral part of an organization
Motivation through human resources and effective strategies for facing challenges, work
groups and job creativity.
Focus to build a dynamic culture

HRM promotes intellectual, moral, psychological, cultural, social and

economic factors of employees within the organization to achieve the
highest potential. It is a continuous process and includes activities like
appraisals, job rotation, training, career development, competency
mapping, mentoring and counselling.
Refers to (Tripathi, 2002), distinguish between personnel management and
HRM as follows:-

Personnel Management

The personnel management has a traditional routine and

maintenance oriented as well as administrative functions
It has an independent function with independent sub-functions
It responds to demands as and when arises
It has exclusive responsibility of the personnel department
It has a narrow scope with administering people

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The motivational factors in personnel management are rewards,

compensations and job simplification.
It considers improved satisfaction causes improved performance

Human Resources Management

It is a continuous ongoing development function designed for human

process.
It follows the system thinking approach and linkage and interface with the
whole system.
It anticipates, planning and continuously advancing
It concerned all managers within the organization, also focused to develop
them carry out the personnel functions
The scope of HRD views the organization as whole and given emphasis on
building a dynamic culture.
The motivational factors are work groups, challenges, creativity on the
jobs.
It considers performance causes the result of satisfaction.

Article VI. (Task 1.2) Functions of HRM

The challenging functions of HRM consist of various factors such as: Job design
Job analysis
Human resource planning
Recruitment
Selection
Hiring
Induction
Performance evaluation
Compensation Management
Training and Development
Employee Movements
Welfare Administration
Health and Safety Administration
Discipline Administration
Grievance Handling
Labour Relations

Article VII. (Task 1.3)Role and Responsibilities of Line Managers in HRM

Line managers are those who individual employees or team of employees directly
report and have responsibility to higher levels in management for those
employees. The responsibilities of line managers consist of: People management in day to day basis
Operational costs management
Technical expertise arrangement
Work allocation and rotas organisation
Work process monitoring

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Quality checking
Customers and client dealings
Operational performance measuring
Providing coaching and guidance
Undertaking performance appraisals
Dealing with discipline and grievances

(Task 1.4)Impact of Legal and Regulatory Frame Work of HRM

The Legal Framework Legislation describes the unlawful to discriminate when the
recruitment and selection process on the basis of: Gender
Marital status
Race
Color
Nationality
Ethnic or national origins
Disability
Sexual orientation
Perceived sexual orientation
Religion
Belief or non belief
Age

The employees those who engaged recruitment and selection should

be aware of the legislation. The relevant legislations are: The sex discrimination Act 1995
The Race Relation Act 1976
Features of the RRA & SDA Direct and Indirect Discrimination
The Race Relations Act 1976(amendment) Regulations 2003
The Disability Discrimination Act 1995(amendment) Regulations
2003
The Employment Equality Act (religion or belief) Regulation 2003
The Employment Equality(age) Regulations 2006 (direct and
indirect)
The Equal Pay Act 1970 Amendment 1983
The Asylum and Immigration Act 1996
Accession (Immigration and worker Registration Regulation
2004
Rehabilitation of Offenders Act 1974
In brief, the above Legal Frame Work Legislation protects applicants
and employees, besides that let employees to take positive action in
recruitment and selection process. The legislation gives the right to
recruiter also to get genuine occupational qualification certificates
and requirements from applicants.

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Article VIII.
RETAIN

L03 REWARD EMPLOYEES TO MOTIVATE AND

Motivation is the factor of stimulating internal and external desire and energy of
people or employees and it continuously generates interest and commitment to a
role or job, as well as it's subject to make an effort to obtain a goal. Motivation
caused by interaction of conscious factors and unconscious factors such as,
intensity of desire or need, incentive or reward value of the goal, expectation or
peers and it's reason for one to behave in a certain way.
So it is vital to organizations to obtain the organizational goals through motivated
employees. Moreover retention of employees are essential, because the
organization invests in employees in their recruitment and selection, training,
personal and professional development. So retention reduces costs and
increases productivity.

Article IX. (Task 3.1) The Link between Motivational theory and reward
Researchers and scholars have investigated the link between motivation and
reward. The different views presented various scholars are:Frederick Winslow Taylor (1856-1917) believes that, workers should be motivated
by pay, and also commented that workers not naturally enjoy work, due to that
required supervision and control, so managers should breakdown production in
to series of small tasks and should be provided training and tools also paid for
the number of items produced. So it encouraged workers and maximize
productivity.
Elton Mayo (1880-1949) believed that workers should motivate not only with
money but also with having their social needs met at work, besides that workers
are best motivated by better communication, greater manager involvement and
working in group or teams.
Abraham Maslow (1908-1970) introduced a psychological theory of five levels of
human needs have fulfilled by employees at work, such as hierarchy of needs
such as:Physiological needs - hunger, thirst
Safety needs
- security, protection
Social needs
- a sense of belonging, love
Esteem needs
- self esteem, recognition and status
Self actualization
- optimum mental satisfaction through artwork, literature
work and so on.
Frederick Herzberg (1923) believes motivators and hygiene factors, there
motivators are those related to the actual job itself, such as how interested the
job is and how much opportunity it provides for extra responsibility as well as
regulations and promotion. Hygiene factors are surrounded the job rather than
the job itself, besides that the employees should adopt a democratic approach to
management through certain methods such as job enlargement, job enrichment
and empowerment.

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Article X.
(Task 3.2) Process of job evaluation and other factors
determining pay
The job evaluation process is essential to ensure employee pay and benefits and
it reflects the worth to the organization confirming equity and fairness, but unfair
salary structure affects the morale and sap energy and vigor.
The job evaluation is the systematic process of defining the relative worth of jobs
within an organization. The job evaluation types are as follows:Job Ranking- It is the comparison of jobs against the other position within the
organization and the comparison is in a general concept such as level of
responsibility and hierarchy to show levels and ranks are subdivided into grades.
Classification of Job grading: - It consists of classification of and defines the
parameters of each grade.
Paired Comparison:- It means the comparison of jobs by using statistical
procedures.
Factor Comparison: - It means identification of a set of compensable factors that
indicative of the worth of jobs in monetary terms.
Point Method: - It starts with the identification of a jobs set of compensable
factors.

Article XI. (Task 3.3)Effectiveness of reward system

The lack of recognition force employees to leave, but better pay offers
from others may not let them quit, if there is recognition. Same time
rewards are a dynamic factor to retain the employees. So the reward
system must manage effectively to get the dynamic result. The nature
of reward and the way of distribution should cause the effectiveness
of reward system. The following points should be considered to make
the reward system effective.
1. It must apply to everyone
2. It should have a personal touch
3. It should intrinsically and extrinsically motivate employees
4. It must have a clear relationship between reward and job
performance
5. It should provide immediately
Article XII. (Task 3.4) Methods of Monitoring Employee Performance
The fair evaluation of employees should need techniques to properly
motivate them and provide pay raise, promotion. So it is required to
identify the attributes of measurable performance criteria to apply all
the employees.

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The objective evaluation of the performance of employees that they

performed on their job duties, also stack up against other employees
in the same position should be considered. Besides that, consider the
employees job requirements, record of classes or training attended
in a whole year and attendance records.
The following major performance criteria and performance levels
ensure the fair evaluation, such as:1. Ambition to the position and initiative to improve the process,
product or overall work environment.
2. Attendance
3. Attitude and co-operation
4. Communication skills
5. Department and company oriented
6. Focus on the tasks
7. Improvements from previous evaluations
8. Integrity
9. Knows when to ask
10.

Level of technical knowledge

11.

Productivity and keeping deadlines

12.

Quality of the work

13.

Reliability and go-to-person

14.

Stress management

15.

Team work and pitching in

16.
Performance levels such as, needs improvement,
minimally acceptable, meets standards, exceeds standards and
outstanding.
Article XIII.

CONCLUSION

The modern HRM contributes a major role to make maximise positive

use of HR through its scientific, modern and human approach to
obtain the organizational goals. The revolutionary progress from
personnel management to HRM and its functions provide a modern

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approach to HR. The legal and regulatory frame work provides safety
to the HR. Besides that the approach of HRM and theories of
motivation and reward system , further more job evaluation and
monitoring contributes to employee benefits and retention benefits
organizations and overall progress of personnel management to HRM
contributes the whole Industrial progress.
Article XIV.

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